This week I participated in a real estate contract update class. It is likely one I will remember forever. Not because the material was earth shattering or spectacular. No, it is where I was when my phone started blowing up with messaging, “Turn the news on.”
It seems like that is the thing I hear in my lifetime when everything goes wrong. Like the day in college when the Challenger was lost on lift off or the morning I turned on the tv to see foreign terrorists striking NYC.
So, any who, I’m in that class this week getting my annual real estate contract update and learning all the new little things we Boulder Realtors need to know. And there are a few new items. So worthwhile to be sure.
But maybe more striking than that class this week is a trip down memory lane. As it happens, I have had the opportunity to look at a Colorado Residential contract to buy and sell real estate from 1985. If I had to use one word to describe it in comparison to today’s contract, it would simply be: Shorter.
The 1985 residential contract clocks in at two pages in length.
Now, to be fair, that’s two legal sized pages. And these days, all contracts are simply on 8 1/2 by 11 paper. Paper – c’mon man, I’m dating myself here. Some transactions never leave the digital world. In fact, I just personally refinanced a property and the entire transaction was digital until the curbside closing today.
But, getting back to that olden days contract, two pages. Here’s a shocker for you. It states the maximum allowable interest rate. That clocks in at a whopping 12 percent. That’s better than 400% more than today’s rates.
Listen, you look at what rates were, what they could be, and I gotta tell you, now is hands down a fantastic time to buy real estate. That refinance I just completed? My 15 year note is at 2.75%. Holy smokes. I have residential home buyers getting loans in the low two’s on thirty years financing. It is simply a fantastic time to buy a home.
Wondering whats been updated in the contract for real estate since the Eighties? Contracts back then had very few date deadlines. Today’s Contract to Buy and Sell Real estate has two pages of dates towards the front of the contract. A counter offer can add a third page of dates to watch.
There were only 21 sections in that contract. Section 21 of today’s contract is on page sixteen of eighteen. Are you smiling? Our Colorado contracts are definitely a bit wordier today than in yesteryear.
Part of real estate contract update relates to being much more thorough. There has been some litigation over the preceding decades. Lessons learned and incorporated into our new contracts.
Here’s an interesting aside. Are you old enough to remember the smell of ink from the mimeograph? While there is not particular aroma, there is the distinct smell of carbon copy paper. That’s really different from our electronically signed documents of today.
Perhaps that’s a good place to call it a day. When you are ready to buy a Boulder home or get your Boulder Colo home sold for top dollar, give me a shout. I know contracts and am here to help!